Scientific Journal of Silesian University of Technology. Series Transport Zeszyty Naukowe Politechniki Śląskiej. Seria Transport

Volume 106 2020

p-ISSN: 0209-3324

e-ISSN: 2450-1549

DOI: https://doi.org/10.20858/sjsutst.2020.106.9

Journal homepage: http://sjsutst.polsl.pl

Article citation information:

Mindur, M. Significance of the port of Singapore against the country’s economic growth.

Scientific Journal of Silesian University of Technology. Series Transport. 2020, 106, 107-121.

ISSN: 0209-3324. DOI: https://doi.org/10.20858/sjsutst.2020.106.9.

Maciej MINDUR1

SIGNIFICANCE OF THE PORT OF SINGAPORE AGAINST

THE COUNTRY’S ECONOMIC GROWTH

Summary. The economy of Singapore is characterised by a stable political

environment, favourable business conditions and very well-developed

infrastructure attracting foreign direct investment, being the driving force of the

economy. It is highly dependent on export, as well as on the dynamic sectors of

transport, business and financial services. Singapore’s natural deep-sea ports and

the geographical location at the crossroads of important shipping channels makes

its trade a major economic sector, next to production and services. There are

currently more than 5,000 maritime companies operating in Singapore, including

over 130 international shipping groups, which constitute an important pillar for

the international maritime transport hub. This article discusses Singapore’s

economic situation by analysing the dynamic GDP growth over the years 1960–

2016 as well as other economic indicators achieved in 2004–2017, including the

dynamics of foreign trade. This research covers the port’s ownership and

organisational structure, and its terminals have been reviewed in terms of their

location, infrastructure and functions by taking into account the new generation

terminal of the port of Tuas, currently under development. Over the years, the port

has seen a steady increase in revenue from transhipment, which is confirmed by

the dynamics of the container volume growth over the years 1972–2017, the

transhipment volume over the years 2007–2018 and the number of container ships

1 The Lublin University of Technology, Nadbystrzycka 38 D Str., 20-618 Lublin, Poland.

Email: mmindur@vp.pl

108 M. Mindur

calling at the port along with their total capacity over the years 2007–2017, as

elaborated in the article.

Keywords: port of Singapore, economy, terminals, transhipment

1. INTRODUCTION

The Singapore seaport is the busiest transhipment hub in the world. Located at the

southern end of the Malay Peninsula, 30 km southwest of the port of Johor in Malaysia, it

provides connectivity to more than 600 ports in 123 countries.2 The island nature of the city-

state of Singapore (besides the main island of Singapore, it contains 60 small coastal islands)

determines the dynamic development and excellent maintenance of both linear and point

infrastructure of transport, and maritime transport in particular.

Fig. 1. Geographical location of Singapore

Source:

https://www.google.pl/maps/place/Singapur/data=!4m2!3m1!1s0x31da11238a8b9375:0x8878

69cf52abf5c4?sa=X&ved=2ahUKEwil_ZGf7qHhAhUj_SoKHYzdA0sQ8gEwAHoECAkQA

Q

For centuries, Singapore performed the important role of a transhipment hub for regional

and international trade as the economic capital of the Malay Peninsula. However, once

Singapore gained full independence in 1965 (in 1963, following its merger with Malaysia, it

ceased to be a part of the British Empire), the port was forced to compete with others in the

region. Along with its progressing revival, the economy was being oriented towards obtaining

raw or semi-processed products from regional and global markets as well as exporting the

processed products back to these markets.3

2 Port of Singapore; https://www.ship-technology.com/projects/portofsingapore/ 3 Heng, Derek. "Continuities and Changes: Singapore as a Port-City over 700 Years". Biblioasia. Singapore:

National Library Board. (1): 12-16. ISSN 0219-8126.

Significance of the port of Singapore against the country’s economic growth 109.

In the late 1960s, a decision was made to build a container terminal in East Lagoon

(today’s Tanjong Pagar) in the port of Singapore, being the first in Southeast Asia, even

though container ships were not yet widespread means of freight transport at that time. As the

transport of containerised cargo developed and the volume of bulk cargo increased, the port’s

facilities have been successively expanded since the 1980s in order to increase its capacity. In

terms of the number of transshipped containers counted in TEU, Singapore is only second to

Shanghai among the world’s largest ports (with 36.6 million TEU transshipped in 2018;

Shanghai’s volume being 40.2 million TEU).

The transformation of a small regional port into one of the busiest ports in the world has

undoubtedly been determined not only by its favourable geographical location at the

crossroads of important trade routes but also by the courageous and visionary plan to build the

first container terminal.

2. ECONOMY OF SINGAPORE

In only a few decades, Singapore has advanced from a poor post-colonial region to the

rank of the largest Southeast Asian centre of business, commerce and finance with highly

developed and successful free-market economy. The city primarily owes its high level of

development to the highly advanced industrial production based on the latest technologies.

Fig. 2. Trends in the GDP of Singapore over the years 1960–2016

Source: https://tradingeconomics.com/singapore

The economy of Singapore is characterised by a stable political environment, favourable

business conditions and very well-developed infrastructure attracting foreign direct

investment, being the driving force of the economy. The Doing Business 2018 ranking on the

ease of doing business ranks Singapore second among 43 countries of the Asia-Pacific region.

The service sector generates nearly 70% of the GDP, while the industry and the construction –

more than 30%. The maritime industry accounts for 7% of the GDP and employs more than

170,000 people. The agricultural sector does not contribute significantly to the GDP. It is for

110 M. Mindur

the lack of arable land that in terms of employment the agriculture accounts for a mere 1.3%

of the total labour force.

Tab. 1

Indicators of Singapore’s economy for the years 2004–2017 (in per cent)

20

04

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

GDP 13.

7

8.1 8.8 12.1 0.4 0.5 15.2 5.4 3.4 4.4 2.9 2.0 2.4 3.6

Private

consumption

5.1 4.3 6.2 10.5 8.5 0.2 9.8 8.1 6.8 4.3 2.8 3.7 4.1 3.9

Unemployment

rate (%)

3.4 3.1 2.7 2.1 2.2 3.0 2.2 2.0 2.0 1.9 2.0 1.9 2.1 2.2

Inflation rate 1.7 0.5 1.0 2.1 6.6 0.6 2.8 5.2 3.6 2.4 1.0 -0.6 -0.5 0.6

Export 20.

5

14.0 12.8 4.4 5.8 -

18.0

22.4 7.5 4.2 8.0 3.6 -6.8 -3.1 10.3

Import 23.

6

13.6 13.7 4.5 13.9 -

21.0

18.8 8.6 5.9 9.8 1.2 -

11.1

-4.9 12.1

Total

investment

12.

5

-9.2 12.4 -

15.3

16.9 -

39.3

103.

1

29.6 1.0 19.8 3.6 5.4 -

15.6

14.1

Source: Ministry of Trade and Industry, Singapore; https://www.mti.gov.sg/

In 2017, Singapore’s GDP increased by 3.6% compared to 2016 and was twice as high as

forecasted. The greatest impact on such results of the Singaporean economy, being

particularly sensitive to global economic fluctuations, was exerted by the increased global

demand for electronic products, which was also one of the most important growth drivers in

2018.

Singapore’s unemployment rate is very low, as it ranged between 2.1 and 3.4% in the

years 2004–2009, however, it has remained at a fixed level of ca. 2% since 2010.

Immediately after the global financial crisis, Singapore was struggling with high inflation

exceeding 5% in 2011. However, this record-breaking level was drastically reduced to 0.6%

in 2017.

The Singaporean economy is highly dependent on exports, especially of electronics,

petroleum products, chemicals, medical and optical equipment, pharmaceuticals, as well as

dynamic sectors of transport, business and financial services.4

In 2017, following two consecutive years of decline, Singapore’s foreign trade regained

its typical dynamics, as the trade volume increased by 11.1%, the imports grew by 12.1% and

the exports by 10.3%. The aforementioned trade revival was mainly driven by an increase in

the trade of electronics. Singapore’s main import partners are China (14.2%), Malaysia

(11.2%), the European Union (10.2%), the USA (8.3%) and Hong Kong (7.2%), while the

most important export markets are China (14.5%), Hong Kong (12.3%), Malaysia (10.6%),

the EU (8.4%) and Indonesia (7.5%).

The dynamic development of international trade in commodities is by no means limited

by Singapore’s lack of natural resources or shortage of land. Its natural deep-sea ports and

geographical location at the crossroads of important shipping channels make its trade a major

economic sector, next to production and services.5 There are currently more than 5,000

4 https://www.forbes.com/places/singapore/ 5 https://www.internations.org/singapore-expats/guide/29457-economy-finance/the-economy-of-singapore-

16045

Significance of the port of Singapore against the country’s economic growth 111.

maritime companies operating in Singapore, including over 130 international shipping groups,

which constitute an important pillar for the international maritime transport hub.6

3. OWNERSHIP STRUCTURE VS PORT MANAGEMENT

The port of Singapore is administered and supervised by the state, in terms of both

financing and development. It is managed by a government agency, the Maritime and Port

Authority of Singapore (MPA), established in 1996 by the merger of the Marine Department,

the National Maritime Board and the regulatory departments of the former Port of Singapore

Authority (PSA), which was transformed into a holding company in 2004.

The MPA operates on behalf of the state government in the areas of maritime transport as

well as port management, development and promotion. Some of its tasks are as follows:

- collaboration with the government and maritime partners to ensure that the port develops

on a continuous basis and strengthens its position in the global market,

- supervision of the marine traffic, safety and the navigation system, coordination of

terminals, implementation of measures to reduce the negative environmental impact of

shipping,

- undertaking initiatives to encourage major ship-owners and operators to commence

operations in Singapore,

- representing the interests of the Singaporean maritime transport sector abroad7.

The port operations performed in both general cargo (container and conventional) and ro-

ro terminals are handled by two port groups: PSA Singapore (established by way of

transformation of the Port of Singapore Authority) and Jurong Port. Both groups belong to

Temasek Holdings, owned by the state treasury and providing funding for the port’s

continuous development. Temasek Holding also controls a significant number of other

companies operating in Singapore, including the DBS bank (the Development Bank of

Singapore Limited) and Singapore Airlines.8

The bulk cargo terminals are predominantly managed directly by their users, such as

refineries, chemical industry companies, etc. (companies such as LANXESS, BASF, BP,

SHELL or EXONN MOBIL run their plants in Singapore).

4. PORT ORGANISATION AND INFRASTRUCTURE

There are two main port groups functioning in Singapore: PSA Corporation Limited, with

its subsidiary company, PSA Singapore, primarily responsible for container transhipment, and

Port Jurong, handling general, bulk and container cargo. Both ports are suitable for all types

of vessels. Container handling services are the port’s key activity, with approximately 85% of

the containers arriving in Singapore being transshipped onto vessels bound for another port of

call. The handling capacity of the port of Singapore is 50 million TEU per year.

6 Ministry of Transport Connecting Singapore; https://www.mot.gov.sg/about-mot/sea-transport/advancing-the-

maritime-industry 7 https://www.mpa.gov.sg/web/portal/home/about-mpa 8 https://www.temasek.com.sg/en/who-we-are/about-us.html

112 M. Mindur

Fig. 3. Arrangement of ports and their respective terminals in the port of Singapore

Source: https://www.straitstimes.com/singapore/full-steam-ahead-for-new-tuas-mega-port

5. PSA SINGAPORE

PSA Singapore currently offers 67 quay berths at its container terminals in Tanjong

Pagar, Keppel, Brani and Pasir Panjang, being operated as a single and undivided integrated

facility. In 2018, PSA Singapore handled 36.31 million TEU of containers. This transhipment

hub accounts for nearly one-seventh of the total container transhipment capacity worldwide

and for more than 4% of the global container handling capacity.

There is one of the world’s largest warehouse parks on the premises of PSA Singapore,

offering more than 12,000 refrigeration units (more than 1.3 million TEU of refrigerated

containers were handled there in 2016). The integrated refrigeration monitoring system

(iRMS) is linked to the CITOS® system, which enables cargo to be tracked on a real-time and

online basis at every stage of operation. It allows customers to monitor the condition of their

cold stores wherever they actually are in the world by means of PSA Portnet® via the

internet. The Reefer Maintenance & Repairs (RMNR) system, on the other hand, keeps track

of all failures, enabling quick response whenever refrigeration units require repairs, as they

may contain sensitive and valuable cargo.

PSA Singapore handles more than 0.5 million TEU of dangerous goods per annum. Some

of the services rendered in this scope include processing of dangerous goods (DG),

leakage/damage control to ensure safe shipment, labelling for containers with missing

mandatory warning labels or ones that do not conform with the IMDG codes, as well as

handling and storage of highly dangerous goods for local delivery or onward shipment. At the

same time, PSA supplies full sets of spare parts for each refrigerated container type.

Significance of the port of Singapore against the country’s economic growth 113.

Moreover, a full range of standard storage warehousing is available at docking stations for

empty containers. PSA operates as the main transhipment hub for collecting empty containers

from ships or for sending them out.9

The flagship PSA Singapore terminal is Pasir Panjang, featuring the most technologically

advanced transhipment machinery and equipment. The terminal is currently used for testing a

fully automated electric crane system, 30 automatic-control vehicles, eight hybrid and 22

battery-powered electric vehicles.10 It is expected that the solutions tested at Pasir Panjang

will be implemented at Singapore’s Tuas mega port, currently under construction, which is

described below.

In the second half of 2016, the transport group of CMA CGM-PSA Lion Terminal Pte.

Ltd. (CPLT), established by CMA CGM S.A. (CMA CGM) and PSA Singapore Terminals

Pte. Ltd. (PSA), commenced its operations in Pasir Panjang. The company has four berths for

mega container ships at its disposal on the premises of Pasir Panjang Terminal (PPT), which

has been extended under phases 3 and 4 (Fig. 3). CPLT uses the most highly advanced port

infrastructure and the latest technologies, and they also provide long-term terminal services

for CMA CGM and its shipping service divisions.

Another joint venture operating in the port, namely COSCO-PSA Terminal Pte Ltd

(CPT), was established by COSCO Shipping Ports Limited (CSP) and PSA. Founded in 2003,

CPT was functioning as the main container transport hub in the region until 2017 when it

moved from the formerly managed two-berth terminal to one with three mega-ship berths

completed under phases 5 and 6 of the expansion. In November 2018, CSP and PSA signed

an agreement on the commissioning of two new berths and rendering them available to the

company. This means that CTP will control five berths in total, which will increase its annual

handling capacity from 3 to approximately 5 million TEU. The new mega-ship berths, similar

to the existing ones, will be supported by the shipyard’s highly automated technology.

In March 2006, MSC-PSA Asia Terminal (MPAT) was officially opened as a joint

venture between the world’s second largest shipping line, the Mediterranean Shipping

Company (MSC) and PSA International. The berths owned by MPAT are fully integrated

with other berths in Pasir Panjang. MPAT is capable of handling mega-ships with a capacity

exceeding 14,000 TEU.

The Pacific International Lines (PIL) dedicated container terminal is located in Keppel.

The joint management and operation of the terminal for PIL and PSA Singapore (PSA) is

performed by the joint venture company PIL-PSA Singapore Terminal Pte Ltd (PPST). Both

the terminal and the berths in Keppel are fully integrated with other facilities operated by

PSA.

The first Singaporean terminal dedicated to cars, that is, the Asia Automobile Terminal

(Singapore) (AATS), was launched in January 2009. It is a joint venture of PSA, Nippon

Yusen Kabushiki Kaisha (NYK) and Kawasaki Kisen Kaisha Ltd (K Line).

Next to the terminals managed by joint ventures in Pasir Panjang, there are also

multifunctional terminals. These are Pasir Panjang Automobile Terminal (PPAT), which

commenced its operations in January 2009, and the multi-purpose terminal of Sembawang

Wharves. PPAT is a ro-ro vessel transhipment hub, featuring three separate quay berths. The

unroofed car parking yard and the multi-storey car park provide a total of approximately

20,000 parking spaces. The multi-purpose Sembawang Wharves terminal handles general and

speciality cargo, including heavy equipment, steel products and cables. There are numerous

9 https://www.singaporepsa.com/about-us 10 The Maritime Executive; https://www.maritime-executive.com/article/two-new-berths-planned-for-cosco-psa-

terminal-singapore

114 M. Mindur

storage facilities, including open ones, at the Sembawang wharf for long and short-term

rental.

6. TUAS PORT

Like many other ports around the world, the port of Singapore has developed into a city,

which used to serve as a focal point for trade and cargo shipping operations in the past. The

lease of three terminals originally sited on municipal territories, that is, Tanjong Pagar,

Keppel and Brani, expires in 2027. The Singaporean authorities have decided to revitalise the

vacant areas as a part of the Greater Southern Waterfront project assuming that a quayside

district with futuristic residential buildings, entertainment, recreation and tourist attractions

will be built in this place, providing access to numerous green areas and the sea itself.11

The relocation of port facilities as well as the personnel from the Tanjong Pagar, Keppel

and Brani terminals to newer facilities with deeper basins in Pasir Panjang, to be operated by

PSA for at least another 20 years, began in 2016. The target is to move all operations to a new

generation terminal on a new artificial peninsula, known as the port of Tuas, which is due to

be completed in 2040 (phase 1 is scheduled for completion in December 2020, with the port

to be gradually commissioned starting from 2021).12 The PSA Singapore container terminals

will eventually be consolidated in a single location.13 The new port of Tuas will be capable of

handling the largest container ships in the world, and it will become the world’s largest

automated container terminal with an annual capacity of 65 million TEU.14 It is, by all means,

an adequate location due to its sheltered deep waters and the proximity to both international

shipping routes as well as major industrial areas in the western part of Singapore. The

decision-makers responsible for the port construction and development intend to make the

port of Tuas a part of a larger ecosystem integrating various stakeholders in a logistic

community, both digitally and physically, and to enable deployment of integrated intermodal

supply chain solutions that will result in more reliable and faster delivery of goods to their

destinations.

The new port will feature such infrastructure as automated quay cranes and automatic-

control vehicles. New systems are to be deployed to enable synchronised negotiating between

all port facilities. The future dispatch centre will combine the functions of control and

coordination of the terminals, ensuring the organisation of all automated port operations and

maintenance. It will be capable of remotely servicing and diagnosing the equipment.

7. JURONG PORT

The port of Jurong was commissioned in 1965 to function as a port for handling of bulk

and general cargo, intended to meet the needs of the industrial development of Singapore’s

11 The week in Asia; https://www.scmp.com/week-asia/business/article/2148878/singapores-tuas-mega-port-

plain-sailing-ahead 12 Maritime Singapore Connect; https://www.maritimesgconnect.com/features/spotlight/5-things-you-should-

know-about-new-tuas-mega-port 13 The Straitstimes, https://www.straitstimes.com/business/an-icon-of-the-port-of-singapore 14 The Straitstimes, https://www.straitstimes.com/business/tanjong-pagar-terminal-cleared-ahead-of-schedule

Significance of the port of Singapore against the country’s economic growth 115.

Jurong district. Its main terminal located in Singapore currently receives more than 15,000

vessels per year, both from the region and from abroad.15

Jurong Port hosts the world’s largest cement terminal serving more than 90% of

Singapore’s bulk cement imports. The annual handling capacity of a terminal arranged on a

5.3 ha plot of land exceeds 7.5 million MT. The terminal features a state-of-the-art

infrastructure and equipment to ensure safe, efficient and environmentally friendly cement

discharge. Cement terminals 1 and 2 are situated at deep-water quay berths of up to 12.9 m in

length, and they can accommodate ships with a capacity of up to 50,000 DWT. They feature 5

screw unloading machines, and their closed-loop air transport system enables cement to flow

freely into storage silos.

Steel Terminal is specialised in handling all kinds of steel products (sheets, wire coils,

reinforcing bars, pipes, beams, rollers, etc.). The terminal offers storage yards and warehouses

with an area of 484 thousand m2 and can handle vessels of 15.5 m in draught.16

Owing to its excellent connectivity solutions and excellent modern port infrastructure,

Jurong Port Combi Terminal provides for transhipment of different types of containers and

general cargo on multipurpose vessels.

Fig. 4. Visualisation of the Tuas mega port

Source: https://www.straitstimes.com/singapore/spore-plans-to-keep-port-attractive

15 Jurong Port; http://www.jp.com.sg/our-expertise/terminals/cement-terminal/ 16 http://www.jp.com.sg/our-expertise/terminals/steel-terminal/

116 M. Mindur

There is a project being implemented at Jurong Port to build Jurong Tank Terminal, a

state-of-the-art liquid bulk cargo handling terminal equipped with 19 tanks for storage and

handling of clean petroleum products and chemicals. With the estimated value of 140 million

USD, the project is a joint venture of Jurong Port Singapore Holding and Oiltanking

Investment Holdings. The new terminal, sited on 16 hectares of land, is facing the Jurong

Island petrochemical centre in Singapore, both to be connected by pipelines. It will have quay

berths capable of accommodating vessels of 16 m in draught and up to 120,000 tonnes in

deadweight. The terminal’s initial capacity will come to ca. 232,000 m3, while after phase 2

of the project is completed, it will potentially rise to 470,000 m3.

There are two terminals in Jurong Port, which play a key role in the domestic ship supply

sector, namely, Penjuru Lighter Terminal intended to service lighter ships, and Marina South

Wharves used to supply ships with spare parts and food. These terminals handle a total of

800,000 MT of cargo per year. They provide quay services, berth and ancillary services.

8. PORT’S TRANSHIPMENT SERVICES

The port of Singapore is a multi-purpose port with an area of 752 ha and a quay length of

21,630 m, handling transhipment of general cargo (containerised and conventional), bulk

cargo (liquid and dry) as well as ro-ro vehicles. The port is capable of handling 1,000 ships

entering or leaving the port per day in 10-minute intervals.17

Over the years, the port has seen a steady increase in revenue from transhipment. In 2018,

the volume of container transhipment increased from 33.7 to 36.6 million TEU, that is, by

7.2% compared to the previous year. The dynamics of the container volume growth is shown

in Fig. 5.

As the world’s demand for goods transported by sea increases, shipowners are using

larger and larger container ships capable of carrying enormous quantities of cargo in order to

reduce shipping costs. Due to meticulous planning and continuous improvement of its

infrastructure, Singapore has become one of the few ports in the world that can serve the

largest vessels.

Tab. 2

Number of container ship arrivals at the port of Singapore over the years 2007-2017

Year Container ship arrivals Number of transhipments

(‘000 TEU)

2007 19,946 27,935.5

2008 20,589 29,918.2

2009 18,005 25,866.6

2010 18,967 28,431.1

2011 19,290 29,937.7

2012 18,567 31,649.4

2013 17,798 32,578.7

2014 17,219 33,869.3

2015 17,722 30,922.3

17 Maritime Singapore Connect; https://www.maritimesgconnect.com/explore/industry-overview/port

Significance of the port of Singapore against the country’s economic growth 117.

2016 17,932 30,903.6

2017 17,663 33,666.6

Source: author’s own materials based on https://www.mpa.gov.sg/web/portal/home/maritime-

singapore/port-statistics.

Fig. 5. Volume of container transhipment in the port of Singapore over the years 1972–2017

in million TEU

Source: https://data.gov.sg/dataset/container-throughput-annual?view_id=ebe25612-f598-

422e-9326-fd7dbc4c6ae0&resource_id=dcf81859-2a92-4ff6-a499-5356a0b82011

The volume of transhipments handled over the years 2007–2018, in a breakdown into

general cargo (including containerised and conventional) and bulk cargo has been

summarised in Table 3.

Tab. 3

Volume of container transhipment in the port of Singapore over the years 1972-2017

according to the type of cargo in ‘000 tonnes

Year General cargo Bulk cargo Total

containerised conventional liquid dry

2007 289,094.2 25,823.2 157,382.3 11,316.4 483,616.1

2008 308,489.7 27,934.9 167,318.9 11,671.8 515,415.3

2009 262,896.8 17,452.1 177,323.7 14,627.2 472,300.3

2010 289,693.5 23,989.7 177,070.2 12588.7 503,342.1

2011 309,379.9 26,130.6 183,843.3 11,821.8 531,175.6

2012 323,714.0 29,827.6 169,671.5 14,799.0 538,012.1

2013 333,049.0 32,067.3 179,160.8 15,303.9 559,581.0

2014 353,538.7 30,879.7 181,679.4 15,170.3 581,268.0

2015 331,739.7 30,118.8 195,836.9 18,150.4 575,845.8

118 M. Mindur

2016 328.195.7 25,047.8 221,413.4 18,639.9 593,296.7

2017 349,101.4 26,944.3 233,038.8 18,603.6 627,688.1

2018 367,421.9 24,323.3 221,525.4 16,854.6 630,125.3

Source: https://www.mpa.gov.sg/web/portal/home/maritime-singapore/port-statistics

Singapore is often referred to as the leading petroleum trading hub in Asia (being the

third largest in the world, after New York and London) and one of the five largest petroleum

refining centres in the world.18 This raw material and its derivatives constitute the main bulk

cargo handled in the port of Singapore, subsequently processed by the highly developed

petrochemical industry. The number of tanker arrivals at the port over the years 2007–2017,

as well as the volume and type of liquid bulk cargo transported by these vessels have been

collated in Table 4 (in 2018, the port received 24,165 tankers).

Tab. 4

Tanker arrivals at the port of Singapore over the years 2007-2017 according to the type of

cargo shipped

Year Petroleum and its

derivatives

Chemicals LNG and LPG Total

number

of

tankers

cargo in

‘000

tonnes

number

of

tankers

cargo

in ‘000

tonnes

number

of

tankers

cargo in

‘000

tonnes

number

of

tankers

cargo in

‘000

tonnes

2007 14,343 367,249 3511 29,635 1458 48,564 19,312 445,448

2008 13,756 378,629 3843 34,226 1861 71,561 19,460 484,415

2009 14,059 424,172 4337 43,854 1684 59,591 20,080 527,618

2010 15,093 467,715 4607 48,393 1655 53,286 21,355 569,394

2011 15,861 536,895 4588 49,011 1831 66,776 22,280 652,682

2012 15,702 561,785 4534 49,854 1994 82,200 22,230 693,839

2013 16,125 567,950 4493 49,833 1999 87,060 22,617 704,884

2014 15,349 555,127 4629 51,924 2240 100,413 22,218, 707,464

2015 14,676 567,341 5083 58,032 2303 94,072 22,062 719,445

2016 15,805 620,756 5209 60,336 2681 99,757 23,695 780,849

2017 16,895 702,926 4763 56,268 2753 116,642 24,411 875,837

Source: https://www.mpa.gov.sg/web/portal/home/maritime-singapore/port-statistics

The port of Singapore also provides supplies and repair services for vessels passing

through the Strait of Malacca. In 2017, out of the total number of 216,342 port arrivals, as

many as 71,682 (33%) were due to an intent to replenish fuel or food supplies or to perform

repairs.19

18 https://www.export.gov/article?id=Singapore-Oil-and-Gas 19 https://www.mpa.gov.sg/web/portal/home/maritime-singapore/port-statistics

Significance of the port of Singapore against the country’s economic growth 119.

9. CONCLUSIONS

The seaport has been performing a key role in the Singaporean economy for years. The

government’s policy of maintaining low import tariffs affects the port’s revenues,

technological progress and dynamically growing trade with China, Hong Kong, Indonesia,

Japan, South Korea, Malaysia, Saudi Arabia, the USA and the European Union. This small

city-state has been consistently implementing the policy of free trade, perceiving it as an

opportunity for further development and increasing competitiveness in relation to other

dynamically developing economies of Asia.

Singapore’s particularly attractive investment climate and stable political environment

attract foreign direct investment from global investors and institutions. The business-friendly

environment is not only conducive to investment but also boosts the economy. The service

sector provides jobs for 80% of workers and creates more than 75% of the GDP, while ca.

20% of the GDP is produced by the industry and the secondary sector employs 15% of all the

workforce. Additionally, a very important factor in this context is the link between the

businesses operating in Singapore and state-owned enterprises. Business groups established as

holdings or trading companies create a larger outlet market and provide access to foreign

technologies or managerial methods. This is particularly important for the development of key

economic sectors such as trade, shipping and logistics, all the more so since Singapore’s

economic growth is heavily dependent on exports, especially of electronics, petroleum

products, chemicals, medical and optical equipment, pharmaceuticals, as well as transport,

business and financial services.

Considered particularly important in Singapore is its high-end manufacturing based on

the latest technologies, including semiconductors and consumer electronics, as well as

machinery, transport equipment and ships. Public funds are typically allocated in sectors

which may become the future of economic growth, such as aviation and aeronautics, precision

engineering and life sciences, including biotechnology, medical equipment and

pharmaceuticals. The Singaporean authorities are also committed to investing in infrastructure

projects and new industrial parks.

It should be noted that Singapore suffered greatly from the global financial crises of 2001

and 2009, having experienced some of the most severe recessions since it gained

independence. The collapse in prices in most of the world’s leading stock exchanges and the

abrupt drop in industrial production also exerted a negative impact on its export-dependent

economy, which declined by 1-2% at the time. However, with time there was an observed

rapid recovery and a return to dynamic growth, both in the years 2004-2007 and in 2010,

when the annual growth rate came to 15.2%, one of the world’s highest.

Singapore is an active member of NATO, ASEAN and other international trade

organisations. The country has entered into numerous free trade agreements, including the one

signed with the European Union in 2015 as the first ASEAN member state.

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Received 01.11.2019; accepted in revised form 22.12.2019

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